The chip is one of the more advanced options to pass or score with the soccer ball.
When you chip, you want to aim for the bottom part of the ball, getting the entire foot and the knee there and follow through to get the ball off the ground over the head of, for example, of the goalkeeper if you want to score the goal, or over the head of the defender if your teammate is placed behind the defender.
So the goal is to get the ball to your teammate or into the goal by kicking the ball, chipping the ball over the head of the defender or goalkeeper that's in between the two of you.
This will be a more advanced version of passing the ball over the head of the player instead of passing the ball on the ground and moving into the open space.
Those are the basics of chipping the ball.